Gold Set for Weekly Loss
Gold prices hovered below $3,340 per ounce on Friday, retaining losses from the previous session and on track for its worst week since late June, as hotter-than-expected US data tempered hopes for a large Fed rate cut.
US producer prices in July rose at its fastest pace in three years, well above forecasts, signaling that companies are passing higher import costs from tariffs onto consumers. Traders are now leaning toward a 25-basis-point rate cut next month, followed by another in October, reflecting Fed’s Mary Daly’s comments opposing a 50-basis-point cut in September.
Investor focus is shifting to whether Fed Chair Jerome Powell will provide new guidance on monetary policy at the central bank’s annual economic symposium in Jackson Hole, Wyoming, next week.
On the geopolitical front, expectations remain cautious that Friday’s summit between Donald Trump and Vladimir Putin will produce a major breakthrough on the Ukraine war.
Source : Trading Economics
